A working group was established by Resolution No. 38 of the Speaker of the State Great Hural (Parliament) dated 2021 with the responsibility to prepare the draft licensing law which has been submitted by the government, d approve the list of licenses and other bills submitted. with him for plenary discussion and drafting of proposals.

The bill regulates relations regarding the issuance, suspension, revocation and cancellation of a license issued to a person authorized to engage in certain types of activities that may harm national security, stability financial, public interest, human health, environment for the conduct of certain activities, or owning and using state and public property as well as determining the classification and types of permits, their registration and prohibited activities on the territory of Mongolia. The bill has 8 chapters and 35 articles.

Prerequisites for Drafting Licensing Law

In Article 5 of the Constitution of Mongolia, it is stipulated that “Mongolia shall have an economy based on various forms of property in accordance with the universal trends of world economic development and the specifics of its own country”, and “the State regulates the economy with a view to ensuring the economic security of the nation, the development of all forms of property and the social development of the population”. Also in article 6.1 states that “In Mongolia, the land, its sub- soil, forests, water, fauna and flora and other natural resources are subject to people’s power and the protection of the state”, and in paragraph 2 of article 6 states that “The land, except for the property of Mongolian citizens, the subsoil, its wealth, forests, water resources and wildlife are the public property of the state” and article 19, paragraph 3, stipulates that “ in the exercise of their rights and freedoms, everyone must not ter undermining national security, the rights and freedoms of others and public order”.

Furthermore, in Article 26.7 of the Civil Law of Mongolia, it states that “for-profit legal persons are permitted to engage in any activity which is not prohibited by law or which does not conflict with the accepted common legal entity”, in Article 26.8 states, “A legal person shall undertake certain activities with the consent of the respective competent authorities provided by law. The right to undertake the activities emerges from the day of obtaining the authorization special”.

In accordance with the above-mentioned principles proclaimed in the Constitution of Mongolia, the Licensing Law was adopted in 2001 with the aim of regulating relations concerning the issuance, suspension and revocation of a license to conduct certain business activities which require specific conditions and expertise. and may adversely affect the public interest, human health, the environment and national security and that.

In addition to the Licensing Act, more than 100 laws govern industry relations. Thus, depending on the nature of the business, industry legislation and related rules and regulations may exaggerate licensing, permitting, termination and relationship supervision requirements and may lead to distortions of legal standards such as determination of license type and purpose. of his deliverance.

In addition, along with changes in industry legislation, the number of licenses has increased by creating new types of licenses or separating the activities associated with licenses under the State Stamp Duty Act.

Under the current licensing law, licenses for 18 sectors must be issued by line ministries for 103 general types, and more than 210 subtypes, and 7 types must be issued by aimag, capital, soum and district governors based on licenses. However, to date, 914 licenses are issued in accordance with other laws and regulations. For example, under Section 15.10.4 of the Licensing Law, it provides for the issuance of 4 types of licenses related to industrial explosives and explosive devices, while the Explosives Traffic Control Law and explosive devices provides for 6 types of licenses.

In addition, it is common for local (municipal) self-governing bodies to issue permits for certain activities that are not permitted by law and impose illegal fees and charges.

It can be concluded that the legal provisions regarding licenses are contradictory with each other and the practice of issuing licenses beyond the legal framework is widespread due to the loss of the basic principles and unified policies governing this type of licensing. relationship in Mongolia.

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